It happened around 4:40 p.m. at the BMO bank on La Palma Avenue, near Lakeview Avenue.
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Police said when officers arrived, the suspect had already taken the victim inside the room.
Negotiators tried to get the man to surrender. Eventually, SWAT officers made their way inside, rescued the hostage and arrested the suspect.
The victim was not injured during the incident and no suspects are outstanding.
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Officers remained at the scene throughout the night as continued their investigation.